Segment and Geographic Information (Tables)

12 Months Ended

Mar. 31, 2014



Year Ended March 31, 2012	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,612		$	1,785		$	382		$	4,779
Expenses	1,157			1,691			359			3,207
Segment profit	$	1,455		$	94		$	23		$	1,572
Segment operating margin	56		%	5		%	6		%	33		%
Depreciation	$	67		$	44		$	—		$	111



Year Ended March 31, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,489		$	1,739		$	382		$	4,610
Expenses	1,028			1,599			358			2,985
Segment profit	$	1,461		$	140		$	24		$	1,625
Segment operating margin	59		%	8		%	6		%	35		%
Depreciation	$	61		$	43		$	—		$	104



Year Ended March 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,478		$	1,658		$	379		$	4,515
Expenses	987			1,514			357			2,858
Segment profit	$	1,491		$	144		$	22		$	1,657
Segment operating margin	60		%	9		%	6		%	37		%
Depreciation	$	50		$	34		$	—		$	84

Reconciliation of segment profit to income from continuing operations before income taxes

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2012:



Segment profit	$	1,572
Less:
Purchased software amortization	103
Other intangibles amortization	65
Software development costs capitalized	(171		)
Internally developed software products amortization	120
Share-based compensation expense	89
Other (gains) expenses, net ⁽¹⁾	1
Interest expense, net	35
Income from continuing operations before income taxes	$	1,330


(1)	Other (gains) expenses, net includes miscellaneous costs.

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2013:



Segment profit	$	1,625
Less:
Purchased software amortization ⁽¹⁾	163
Other intangibles amortization	54
Software development costs capitalized	(161		)
Internally developed software products amortization	154
Share-based compensation expense	78
Other (gains) expenses, net	—
Interest expense, net	44
Income from continuing operations before income taxes	$	1,293


(1)	Amount includes impairment recorded in the fourth quarter of fiscal year 2013 of approximately $55 million relating to purchased software (see Note 6, “Long Lived Assets,” in the Notes to the Consolidated Financial Statements for additional information).

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2014:



Segment profit	$	1,657
Less:
Purchased software amortization	117
Other intangibles amortization	60
Software development costs capitalized	(33		)
Internally developed software products amortization	165
Share-based compensation expense	82
Other (gains) expenses, net ⁽¹⁾	173
Interest expense, net	54
Income from continuing operations before income taxes	$	1,039


(1)	Other (gains) expenses, net consists of approximately $171 million of costs associated with the Fiscal 2014 Plan and other miscellaneous costs.

Information about Company by geographic area

The following table presents information about the Company by geographic area for fiscal years 2014, 2013 and 2012:



(in millions)	United States		EMEA ⁽¹⁾		Other		Eliminations			Total
Year Ended March 31, 2014
Revenue:
From unaffiliated customers	$	2,677	$	1,093	$	745	$	—		$	4,515
Between geographic areas ⁽²⁾	446		—		—		(446		)	—
Total revenue	$	3,123	$	1,093	$	745	$	(446	)	$	4,515
Property and equipment, net	$	125	$	116	$	54	$	—		$	295
Total assets	$	8,908	$	2,076	$	1,032	$	—		$	12,016
Total liabilities	$	4,919	$	890	$	637	$	—		$	6,446
Year Ended March 31, 2013
Revenue:
From unaffiliated customers	$	2,716	$	1,104	$	790	$	—		$	4,610
Between geographic areas ⁽²⁾	460		—		—		(460		)	—
Total revenue	$	3,176	$	1,104	$	790	$	(460	)	$	4,610
Property and equipment, net	$	138	$	108	$	65	$	—		$	311
Total assets	$	8,897	$	1,911	$	1,007	$	—		$	11,815
Total liabilities	$	4,802	$	939	$	624	$	—		$	6,365
Year Ended March 31, 2012
Revenue:
From unaffiliated customers	$	2,779	$	1,182	$	818	$	—		$	4,779
Between geographic areas ⁽²⁾	472		—		—		(472		)	—
Total revenue	$	3,251	$	1,182	$	818	$	(472	)	$	4,779
Property and equipment, net	$	181	$	121	$	84	$	—		$	386
Total assets	$	9,078	$	1,904	$	1,015	$	—		$	11,997
Total liabilities	$	4,911	$	1,009	$	680	$	—		$	6,600


(1)	Consists of Europe, the Middle East and Africa.


(2)	Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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